Part 1: Navigating SSBCI: Ulu Ventures' Experience and Feedback
Why emerging managers should consider SSBCI funds after recent updates
The following content is part of a 3-part series which aims to shed light on the State Small Business Credit Initiative (SSBCI) and funds’ experiences through the application and decision-making process. Learn more about SSBCI here.
Written by: Maria Salamanca, Partner at Ulu Ventures
In February 2023, the Ulu Ventures team learned about iBank through Cambridge Associates. The SSBCI application process proved invaluable as we engaged with Cambridge Associates and U.S. Treasury teams in ongoing discussions aimed at refining the SSBCI program. While Ulu Ventures ultimately decided not to pursue SSBCI funds, we provided detailed feedback to the Cambridge and iBank teams. Our goal was to help future funds navigate these opportunities more effectively. The iBank team was transparent, collaborative, and committed to making the program work within its limitations. Their dedication to supporting diverse asset managers is commendable, and we believe they are excellent partners for emerging managers looking to unlock additional limited partners (LP) support.
At the time Ulu Ventures applied, iBank lacked the state supplement that would ensure equitable fees for all LPs. With over 80% of Ulu’s LP base being institutional, it was crucial to address any fee discrepancies to maintain legal consistency in our terms. Additionally, our investment strategy includes follow-on investments in Series A and B rounds, but iBank's capital was limited to rounds under $20M. This presented a challenge for a portion of Ulu’s investments, creating potential accounting and back-office complexities and differing risks at the asset level compared to other LPs.
Given Ulu’s extensive portfolio, with each fund having over 60 companies, any exceptions in terms would impact us more significantly than they might for funds with a more concentrated portfolio. As a result, Ulu Ventures decided not to pursue SSBCI funding at that time.
However, with the introduction of the CA supplement funds to address the fee gap, Ulu believes that the SSBCI funds now offer a compelling option for funds with a concentrated portfolio. The changes implemented since Ulu’s initial evaluation make it worthwhile for Latino general partners (GPs) and other emerging managers to consider applying to SSBCI funds and determine if it’s a fit within their LP base.
The Ulu team continues to stay in touch with the iBank team and remains open to future collaborations as the program evolves. Their commitment to diversity and inclusion in asset management aligns with our values, and we look forward to potential opportunities to work together.
About Maria Salamanca from Ulu Ventures:
Maria Salamanca is a Partner at Ulu Ventures, a leading early-stage venture firm in Silicon Valley. She joined Ulu Ventures in 2022, having previously made significant contributions at Unshackled Ventures, where she focused on investing in immigrant founders at the pre-seed stage. During her time at Unshackled Ventures, she was involved in over 75 investments and reviewed more than 8,000 companies.
Maria's journey in venture capital began in 2015 when she joined Unshackled Ventures, shortly after its founding. Her notable achievements include being named the first Latina in Forbes 30 Under 30 for Venture Capital in 2018 and being recognized by Business Insider and NVCA for her influence and impact in the industry.
Her career also includes significant work in political advocacy. Before her venture capital career, she worked with FWD.us, an organization founded by tech leaders like Mark Zuckerberg and Bill Gates, focusing on immigration and criminal justice reform. She also co-founded Swing Left, a political organization aimed at supporting Democratic candidates, where she served as COO and now sits on the board.
In addition to her venture capital and political work, Maria is a founding member of SomosVC, an organization dedicated to increasing Latino/a representation in the venture capital industry. She holds a degree in Political Science and Legal Studies with a minor in Public Policy from UC Berkeley.
She is currently at Ulu Ventures, a fund notable for its data-driven investment approach and its focus on diversity, with a significant portion of its investments going to companies founded by women, minorities, and immigrants.